When we discuss Trauma insurance with clients, they often tell us that they have private health cover, so they don’t see the need for trauma insurance. In reality, these two kinds of insurance are very different. There is a general belief that, if you have private health insurance, all your medical expenses are covered in the event of a significant illness. Unfortunately, this is often not the case.

Trauma insurance is not designed to replace private health insurance. It’s designed to fund the financial impact of suffering a critical illness. A Trauma insurance policy pays out a lump sum benefit on diagnosis of a specified critical illness such as cancer, stroke, heart attack and many others. This benefit helps cover things like out-of-pocket medical expenses and the loss of your spouse’s income, as they would typically need to take time off work during treatment. Depending on the type of illness and the severity, the financial impact can vary significantly – from the tens of thousands up to the hundreds of thousands of dollars.

The trauma of not having Trauma Insurance

Cancer is one of the most common critical illnesses in Australia, and is often one of the most expensive to treat. Recent examples that we are aware of include a woman who had to raid her superannuation to fund $60,000 worth of out-of-pocket medical expenses following breast cancer surgery, despite having private health insurance, and a 12-year-old boy whose parents were faced with a $180,000 expense for his Hodgkin’s lymphoma medication. So, unless you have the necessary funds available elsewhere, your medical treatment options are often limited by your financial means.

Could you afford the best treatment?

The benefit of having effective Trauma insurance on top of your private health insurance, is that it provides you with the necessary funding to ensure that you can choose the best possible treatment for your illness, and aren’t forced to take options that result in a poor quality of life and/or a much lower recovery rate.

The good news is that survival rates have increased significantly, due to advances in medical treatment. Unfortunately, this can come at a significant cost at a time when stressing about finances is the last thing you need. So don’t be caught out by thinking that private health insurance pays all the bills. Effective trauma insurance could give you financial flexibility as well as access to the treatment you need, when you need it.

If you would like more information please call 1300 ELSTON or email info@elston.com.au and an adviser will be in touch.